PSI Ohio Insurance Practice Exam

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Prepare for the PSI Ohio Insurance Exam. Utilize flashcards and multiple choice questions with hints and detailed explanations. Gear up for success!

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In an adjustable life policy, which of the following is NOT adjustable by the policyholder?

The interest rate
The death benefit
The premium amount
The length of the policy term

The correct answer is: The interest rate

In an adjustable life policy, one of the key features is the flexibility it offers policyholders regarding certain policy components. The interest rate, however, is typically set by the insurance company and is not something that policyholders can modify. This is determined by the insurer’s investment strategy and prevailing market conditions, making it distinct from other elements of the policy. On the other hand, policyholders do have the ability to adjust the death benefit, premium amounts, and the length of the policy term, allowing them to tailor the coverage to their changing needs and financial situations. This capacity for adjustment is what makes adjustable life policies appealing, as they can adapt over time in response to life’s uncertainties and financial responsibilities.